Is grease the word?

"I hate to be a kicker,
I always long for peace,
But the wheel that does the squeaking,
Is the one that gets the grease."
 -- Josh Billings, "The Kicker," ca. 1870

I'm sure that most of you are familiar with the "squeaky wheel" adage, the origin of which is credited to the poem above. Josh Billings was a 19th century American humorist, second in popularity in his time only to Mark Twain.

For business owners, the Squeaky Wheel syndrome is no laughing matter.  You want happy customers, not disgruntled ones. Organizations go great lengths and invest great sums to ensure that their organizations not only understand best practices but execute them flawlessly.  Some succeed, some don't: There are both customer service Halls of Fame and Halls of Shame. 

In a recent discussion about the book Raving Fans, a bestseller about how to make great service a competitive advantage, business owners discussed how they instilled and practiced the "customer first" mentality in their companies.



One retailer described how he sends notes and small gifts to customers who have had issues, whether real or imagined.  Asked if she did this for all unhappy customers, she replied "no," but more often than not.  Then she was asked what she sends her "best" customers...the ones who buy most frequently, spend the most, are most active on the company's social media pages.  After some uncomfortable, but thoughtful silence, the answer was, "nothing, but that will now change." 

Squeaky wheels surely need attention.  But make sure that the silent wheels, the ones carrying the load for your business without issue or complaint, are well cared for and properly maintained.  You may not always hear them, but you'll notice them when they are gone.  And you'll save on grease, which is literally and metaphorically both messy and expensive.

On the edge

I attended a terrific seminar last week, hosted by a local professional association about which I had heard many good things.  As with many first-of-the-year meetings, the topic was planning for business generation.  The room was overflowing.

The presenter did an excellent job of building participation and conversation:  she didn't talk at the audience, but rather made a few points that led to interaction among the participants...sharing of information...making of connections, etc.  Attendees left the meeting animated and motivated.  Who could ask for more for on a January Friday afternoon?

There was one statement that the presenter made as she exhorted the crowd to develop personal marketing plans that was a lone discordant note in a otherwise resonant and well-orchestrated presentation:

"Your mother and grandmother were wrong: Humble does not work."

Is that true?  The antonyms of humble include arrogant, chesty, self-important, beaming, swelled, vainglorious, big-headed, persnickety, snooty, snot-nosed, stuck-up, too big for one's breeches, boastful and braggart.  I don't think those qualities are what the presenter would recommend as keys to winning friends and influencing people.  Unless you're running for Congress.

Business professionals today face a conundrum.  There is no question that while the ability to connect is growing exponentially, it is also harder to gain visibility and capture attention.  So we're resorting to stunts, gimmicks, the outsized and the outlandish and labeling it "edgy" to rationalize our actions.

Hear, say.

At a gathering of business folks recently, we discussed the book Power Questions.  Those gathered found it to be a good, thought-provoking read, and some had already put some of the concepts and questions into practice in their organizations.

The author, Andrew Sobel, has penned several books on selling and fostering lasting client relationships.  Good questions, in his words, "light fires under people, help them see problems in new ways, and inspire them to bare their souls. The result is deep personal engagement." Power Questions offers many great examples of great questions to ask and how to ask them, and provides the reader with more than 300 questions, grouped topically.  It's a great resource for any business leader.

Is questioning enough, though?  Most modern sales "systems" are now built around the concept of questioning, of "finding the pain" of the prospective buyer.   Asking pre-programmed questions that are designed to manipulate the emotions of someone you just met doesn't seem like the recipe for success to me.  As one of the members of our book group said, "if a salesperson asks me 'what keeps you up at night?', I know they are a hack and haven't done their homework."

Reach out

Summer officially ends at 10:49 am EDT this Saturday, September 22, if you want to mark your calendar and get your eggs ready.

As the calendar turns from the lazy, hazy days into the rush of school, sweaters and falling leaves, so to does business psychology...to the coming fourth quarter, the end of the calendar year, the literal and figurative accounting of the year's progress (or lack thereof.)

Perhaps that's why so many of my discussions this month have focused on sales and selling...business owners are taking another look at their numbers, their goals for this year and next and asking themselves, their staffs and their advisors "what's next?"  This cogitation is a good thing; the time to plan is now.

At one recent TAB Board meeting, one business owner -- whose sales come predominantly through manufacturing reps and distributors -- reported increased sales to this group following face-to-face visits by company scientists (the company has no salespeople, per se.)  The results were so striking that they have begun a program of formal visits to their reps around the world.  The next step is hiring a professional to manage distributor relations.

Personal attention, interpersonal relations, human dialogue -- such a concept, as my bubby would say. In our increasingly digital virtual world, up close and personal is becoming the exception, and not just in business or selling. 

Business Scene Investigation

The following is a true story. The names have been changed to protect the disappointed.

The facts:

It looked like the perfect evening:

• A summertime shindig at a recently-opened lakeside bistro;
• A world-class chef at the grill; 
• A pre-holiday weekend;
• A perfect weather forecast, and
• A renowned local band providing entertainment.

With more than a month of preparation and provisioning invested in the event, expectations were high.  Instead of a perfect evening, it was a perfect set-up:  only 35 patrons showed. A crime for sure.

The loss the house took that night is still being counted, both financial and psychic.  Certainly, the crowd was far below estimates as indicated by the number of staff on hand. While the diners were oblivious, the pain was clearly evident on the proprietor's face and in his voice.  He had been taken. Big time.

So sell me.

Last in a series...

The world of commerce has changed dramatically in the past few years. Technological, demographic, social and economic changes are raining over small businesses like a never ending series of squalls.

The processes and techniques employed by many small businesses were developed in the mid-to late-20th century and built for a “broadcast” world that for the most part no longer exists: large audiences that you can reach and motivate through traditional, one-way “tell and sell” laden with cliches and jargon.

Who are you?

Third in a series...

In 1978, The Who asked the musical question, "Who are You?" While the song and album were an exploration of conflicting progressive and punk rock attitudes, nearly 35 years later their query could be the anthem for current sales and marketing angst.

Gathering meaningful information on customers is one of the most important tasks for small businesses.  It is also one of the most difficult, and therefore, among the most neglected by small business owners. 

At its most basic level, any operating business has two target audiences:  current customers and potential customers.  Most proprietors I meet and/or work with operate under a "build it and they will come" approach of one form or another.  And for most, it works well in getting a business through its formative stages:  establishing a customer base and following, and building a revenue stream.

But to scale an enterprise takes more focus.  After all, your target market is not everyone.

Back to the Future?

Second in a series...

In our last entry,  we asked "are buyers liars?"

Buyers know what they want, and the key to more productive selling is gaining an understanding of the how, why and when of the purchase decision.

But getting that information, now there's the rub.

In some very meaningful ways, the selling today is much more difficult than in years past: while technology has made it easier to identify and communicate with prospects, it has also erected new barriers to making meaningful connections.

For example, there are fewer live gatekeepers (who has a secretary anymore?), but it is arguably harder to break through the electronic ones -- voicemail, email, online social networks.  And manipulation sure doesn't work in either case.

So, while there are new barriers to reaching customers, even when surmounted, the "trust hurdle" is much higher.

Information duncity

Did you ever notice how some memes seemingly appear out of nowhere, then are suddenly ubiquitous -- like the car you never noticed until you bought one and now it seems everyone owns one?

I recently wrote about how failure can actually lead to success, and how "one's errors are a portals of discovery."  Turns out lots of people are talking and writing about mistakes lately.

One of the best pieces I've seen is one from TAB colleague John Dini, who recently wrote on the value of mistakes in business. His advice to start a "mistake budget" is one that I will steal gratefully, with generous attribution.

However, mistakes aren't always all they are cracked up to be.  In this unforgiving economy, we need to maximize "good" mistakes and minimize the "bad" ones.  We need to make better decisions.

And there's the rub.

Heat Burns

It's been an interesting week in damage control.

• Goldman Sachs, one of the mercenary handlers of the "animal spirits" of capitalism, found itself the subject of a lovely parting gift from departing employee Greg Smith.  (Ouch, that one will leave a mark.)

• Dollar Shave Club, whose funny, snarky introduction generated a viral sensation and tons of new customers, found that operating the business was a little trickier than creating a funny ad:  they announced that they can't ship initial orders on time because they weren't prepared for the demand. The impact: to be determined.

How well are you prepared to defend yourself in the court of public opinion?  Every organization -- whether a globe-straddling colossus or a start-up just launching itself -- will face an emergency at some point.  After all, accidents happen, things break, smart people do stupid things and sometimes good people do bad things -- occasionally on purpose. As the saying goes, "stuff" happens.

Land of the free

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So, how did you spend your free day on Wednesday?  You, know, February 29, aka Leap Day.

Ladies, did you channel your inner Sadie Hawkins?

Dudes, did you take it head on, mano-a-mano.

Was it a day of routines, deadlines, accomplishments, chores, sports, striving.  Just another day; one of 365 366? 

Pity if you didn't leverage this quadrennial opportunity. 

It was FREE.  What do you mean that  you didn't take advantage of it?  What's wrong with you?  Don't you love free stuff?  Doesn't everybody?  Didn't you get the memo?

It seems that there's a offer of "free" everywhere you look:  Buy One/Get One Free; Free Estimates; Free Consultation; Free Delivery.  Consumers lap it up.  And why not, it's FREEEE!

No wonder the country is broke.  We're giving it all away.  Increasingly so.  Hard to make a buck that way, isn't it?

In _____ we trust?

Trust is on the wane. 

This is probably not a big surprise to you.  Given the economic and social change occurring globally, and the stresses that change induces, a fair amount of dislocation and disconnection is natural.

But it seems deeper than that. Everywhere you turn there seems to be another poll or study showing a dramatic decline in trust and a rise in skepticism.  (Disclaimer: I worked at Edelman back in the 90s.)
 
The state of trust in the world, or rather the lack of trust in our institutions and leaders, is disturbing.  And certainly not without cause:  the breadth of bad behavior is staggering and seemingly all-encompassing.  Type "list of recent scandals" into Google, and you will relive a cascade of misdeeds by corporate, academic, media, sports and religious institutions and individuals. 

The skepticism and lack of trust is bad for business.  Marketing 101 teaches us that for a business to succeed over the long term, it must be 1) known, 2) liked, and 3) trusted.

But it's not just big business.  Some of the worst offenders are smaller enterprises, the mom and pop operations that should know better, because they need every customer.  We all have stories of local businesses that we don't frequent any more because they changed for the worse and broke a trust that had taken years to build.

Shark Jumping

It's a new year, and the armchair quarterbacking on 2011 is in full swing, as a variety of businesses, mostly retail, report December results.  It looks like a mixed bag...some gainers, some laggards, some BIG losers.

Sears and Kmart seem to be among the losers, with the announcement that they will be shuttering stores across the country.  Will we lose these venerable names to the dustbin of business history?  Possibly, and they would join a decidedly non-illustrious group.

While attention is paid on the failure rate of small and start-up businesses, as noted in this recent blog post, there is also a continuing churn at the top of the corporate heap:

Comparing the Fortune 500 companies in 1955 and 2011, there are only 67 companies that appear in both lists. In other words, only 13.4% of the Fortune 500 companies in 1955 were still on the list 56 years later in 2011, and almost 87% of the companies have either gone bankrupt, merged, gone private, or still exist but have fallen from the top Fortune 500 companies (ranked by gross revenue). Most of the companies on the list in 1955 are unrecognizable, forgotten companies today.  That's a lot of churning and creative destruction, and it's probably safe to say that many of today's Fortune 500 companies will be replaced by new companies in new industries over the next 56 years.

Along with Sears and Kmart, Best Buy seems to be jumping the shark as well. This Forbes story tells a tale that is all too familiar to customers, but seems to continually escape notice of those leading these sinking ships.  In nearly all cases, the operators lose touch with the customers...and start selling what they want, rather than what the customer wants or needs.

Smaller business owners have a natural advantage over these behemoths, in that they are closer to their customers, but, alas, often suffer the same "buy what I have" rather than "sell what you want" mentality.

It's the customer who decides your businesses fate.  Engaging yours in an active dialog about their wants and needs is the single best thing you can do to grow your business.

Trust or consequences?

'Tis also the season of boorish behavior, it seems.  Is it the solstice?

While the perception is that inexcusable behavior rises as we get into ho, ho ho mode, perhaps it's just made more visible because acting badly doesn't jibe with the Joy to the World, Season-of-Light narrative that's all around us.

But hey, neither does crass commercialism.

The silver lining is that there is a considerable, growing and very visible backlash.  With the rise of social media, uncivil behavior is not going unchecked. 

To wit:

• A FedEx employee made an un-Santa like delivery, (both in style and in being caught on video.) FedEx took quick action in a direct and forceful response.

• JP Morgan Chase CEO's Jamie Dimon was called out in Josh Brown's zeitgeist-lassoing letter for his peevishness at being castigated for being "successful."

• As Black Friday brings more and more stories of disturbing behavior among many, people are documenting it and putting pressure on institutions to check it.

It is a good thing -- to borrow a phrase from a convicted felon -- that we're not inured to such bad behavior, even as it seems pervasive. There are still affirming random acts of kindness being undertaken, as with the K-Mart angels making layaway payments across the nation.

The business lesson?  Only those organizations with a deep reservior of trust, rather than a foundation of sand, can withstand the very public backlash that's following these aberrant incidents.

Be Real and Get Real People! (Companies are people too, at least in this instance.)  In 2012, just be trustworthy.  Please don't waste our time and your money trying to manufacture trust.  Invest in earning it.  There's a much better return.  

Marketing guru Seth Godin nailed it in his blog post homage to Steven Colbert, "Trustiness."

 It's incredibly difficult to build a civil society on the back of "read the fine print...." When we have to spend all our time watching our back and working with lawyers, it's far more challenging to get anything done--and it makes building a business and a brand infinitely more difficult.

The question that needs to be asked by the marketer is, "are we doing this to create the appearance of trust, or is this actually something trustworthy, something we're proud to do?"

 The public is watching and they will out the fake, the false and the disingenuous. 

Don't dream it, be it. 

Best of the Season and Happy New Year to all.

Can you believe your eyes?

So how was YOUR Black Friday/Small Business Saturday?  Oh, was there a holiday in there?  Sorry...hope you enjoyed your feast.  How many ways did you find to serve turkey leftovers?  Were you as glad to get back to business as I was? 

There seems to be as many opinions on the opening of the 2011 holiday selling season as there are pundits pontificating and organizations orating.  Sales were up 16% on Black Friday, or they were up 1.9% for the three-day weekend, or don't pay any attention to any of the data.

"Facts are stupid things," Ronald Reagan once misspoke.  He also said, more aptly "trust, but verify."  There are plenty of examples of the dangers of focusing on the wrong thing, one of my favorites being the famous "monkey business" experiment. 

The bottom line is that the most pertinent data are yours:  your Key Performance Indicators, and how you use data to guide your business decisions.  KPI's can be a powerful decision-making tool, when combined with a proper business plan, and they need not be elaborate to be effective; in fact, just the opposite.

For smaller businesses especially, data are essential for being able to separate fact from fiction and to verify the existence of any of 800 lb gorillas sitting in our midst.